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Sep 30, 2025
Kaiser Aluminum Q3 2025 Earnings Report
Kaiser Aluminum reported its third quarter 2025 financial results, with increased net sales and net income, and an improved net debt leverage ratio.
Key Takeaways
Kaiser Aluminum delivered its fourth consecutive quarter of results above expectations, driven by increased net sales and net income. The company reported $844 million in net sales and $40 million in net income, with adjusted EBITDA reaching $81 million. Despite non-recurring startup costs, favorable metal tailwinds contributed to the strong performance, leading to an upward revision of the full-year 2025 Adjusted EBITDA outlook.
Net Sales increased to $844 million, up from $748 million in the prior year period, primarily due to higher average realized sales price.
Net Income rose significantly to $40 million, or $2.38 per diluted share, compared to $9 million, or $0.54 per diluted share, in Q3 2024.
Adjusted EBITDA reached $81 million with an Adjusted EBITDA Margin of 23.2%, demonstrating strong operational performance.
The Company's net debt leverage ratio improved to 3.6x from 4.3x at December 31, 2024, indicating enhanced financial stability.
Revenue by Segment
Forward Guidance
For the full year 2025, Kaiser Aluminum expects Conversion Revenue to be flat to up 5% year-over-year and has raised its Adjusted EBITDA outlook to improve 20% to 25% year-over-year.
Positive Outlook
- Conversion Revenue is expected to be flat to up 5% year-over-year.
- Adjusted EBITDA outlook is raised to improve 20% to 25% year-over-year.
- Strengthening underlying performance is contributing to the improved outlook.
- Rising metal prices are expected to positively impact Adjusted EBITDA.
- The company is completing its major investment cycle, which should reduce future startup costs.
Challenges Ahead
- Startup costs associated with key strategic investments are partially offsetting the increase in Adjusted EBITDA.
- Shipments for Q3 2025 decreased 8% year-over-year due to a planned partial outage at the Trentwood facility.
- Conversion Revenue for Q3 2025 decreased 3% compared to the prior year period.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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